- Established in 2002
- Parent Company, Newsgrade Corporation researched and developed proprietary
software designed to reveal the logical relationships between financial
statement data and stock price performance. This software examines, combines
and displays financial statement data in unique ways, allowing breakthrough
discoveries to be made.
- Software analyzes and monitors 1,801 data points for each of over 10,000
public companies, more than 200 industries and at least 12 sectors of the
- Strong intellectual property: Multiple patents-pending on technologies,
algorithms, formulas and processes, used for diagnosing public companies and
share price performance.
Created OPSTM and OPS DiagnosticsTM
- Cash flow based "OPS" (Operational-cashflow Per Share) is a new financial analysis metric which is a better leading indicator and is not as easily manipulated as EPS (earnings per share).
- Cash flow analytics and "OPS's" reliability will give it precedence over all earnings based measurements such as EBIDTA, EBIT, EBITD, EBITA, Cash Earnings, CFPS and Pro Forma Cash Flow.
- Proprietary user-friendly and intuitive "OPS Diagnostics" interface software.
- Discovered and filed a patent on "The EPS Syndrome", a new financial statement algorithm which was validated by comparing the pre-bankruptcy financial statements of Enron, Sunbeam and scores of other companies. Published warnings on over 200 companies during 2002, including Adelphia Communications, Concord EFS and Fleming Companies.
- Discovered that each and every public company's "OPS" (Operational-cashflow Per Share) logically falls into a mathematical sequence that ranks it into one of eight distinctive "OPS Ranking" risk categories.
- Discovered OPS Ranking algorithms that identify emerging growth companies
and turnaround companies one to three quarters before they become profitable.
- Discovered that a combination of its proprietary cash
flow metrics could be used to develop algorithms, which can be used to
identify and predict a majority of the top performing stocks in the market.
- Discovered that the aggregated financial statement data for an index
or an industry could be used to predict major trend changes for the industry
or index and the share prices for their respective components.
- Predicted in two Chicago
newspapers that Sears was having difficulties in collecting
their credit card receivables, which Sears executive vehemently denied. Approximately
two weeks after the denial Sears admitted that it did have serious problems
with its credit card receivables and its shares fell from $37 to $18 in one
- Issued OPS Warnings (Enron diagnoses) and bankruptcy warnings on several
large and highly visible public companies when they at the same time were being
highly recommended by Wall Street analysts and their respective prices were
all over $10 per share. They included "The
Fleming Companies", a 75 year old NYSE listed
company that was the USA 's largest food distributor with approximately $20
billion in revenue and 17,000 employees and several smaller high profile NASDAQ
listed technology companies including Astropower and MCSI, Inc. All three companies
- Its OPS
Newsletter identified numerous high performing stocks including
two that were bought out by Barry Diller's Interactive Corp (NASDAQ:IACI).
portfolios consisting of the best 250 small, mid and large cap
companies in June of 2005, which were based on its back tested algorithms.
All three portfolios have positive track records and have outperformed a majority
of all mutual funds and most indices.